Exam Alert: FINRA expands trading pause rule to all NMS stocks

Effective August 8, 2011, FINRA has expanded its trading pause rule to encompass all NMS stocks. The new rule states that trading Continue reading

Effective August 8, 2011, FINRA has expanded its trading pause rule to encompass all NMS stocks.  The new rule states that trading in an NMS stock will be paused if the price of the security shifts, in a five-minute period, by:

– 10% for securities included in the S&P 500® Index, the Russell 1000® Index and a list of selected exchange-traded products (ETPs)

– 30% for other securities priced at $1.00 or more

– 50% for other securities priced at less than $1.00.

Prior to August 8, the trading pause rule only applied to securities included in the first category (the S&P 500® Index, the Russell 1000® Index and selected ETPs).

Relevant to the Series 24, Series 7, Series 62, and Series 55 exams.

Source: FINRA Notice 11-37